New World Bondholders Receive Interest Payment on Dollar Note

New World Development Co. has paid interest due on a dollar note, according to several bondholders, giving the indebted Hong Kong builder some breathing room as it works to complete an HK$87.5 billion ($11.1 billion) loan refinancing deal.

The company owed $5.05 million in interest by Monday on the 5.875% bond, according to Bloomberg calculations. Investors were closely monitoring the deadline after the builder recently decided to use an option to defer coupon payments on four perpetual notes. The interest due this week, however, was on a regular bond that didn’t carry such an option to push back payments.